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Rupees trades marginally higher against US dollar

LiveMint 07-03-2017Ravindra N. Sonavane

Mumbai: The Indian rupee on Tuesday was trading marginally higher against the US dollar in a thinly traded market as traders avoided taking long positions ahead of the key events in domestic as well as international markets due later this week.

The local currency opened at 66.67 a dollar. At 9.15am, the home currency was trading at 66.68—up 0.05% from its Monday’s close of 66.72.

Investors are focusing on results of the upcoming state elections on 11 March. The markets are also gearing up for an interest rate hike by the US Federal Reserve in its two-day meeting on 14-15 March.

The benchmark Sensex index rose 0.33% or 94.71 points to 29,142.90. So far this year, it has risen 9.4%.

The 10-year bond yield was at 6.875% compared to its Monday ’s close of 6.878%. Bond yields and prices move in opposite directions.

So far this year, the rupee has gained 1.75%, while foreign institutional investors (FIIs) have bought $1.76 billion and $430.60 million from local equity and debt markets, respectively.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 101.66—up 0.01% from its Monday’s close of 101.64.

Traders are cautious ahead of the European Central Bank (ECB) meeting and US employment data on Thursday and Friday, respectively. ECB chief Mario Draghi is expected to keep quantitative easing, or QE, going until the end of the year while jobs data likely to come at 190,000 for February, according to a Bloomberg forecast report.